Companies that choose to use Theory Z for leadership are attempting to balance the cultures of American business concepts with that of Japanese business culture. Companies often struggle to find the perfect balance, but in many cases, companies that successfully use Theory Z have gained enormously in terms of profits, as well as employee retention. Theory Z allows the company to provide incentives to drive employee loyalty but with limited costs as the Japanese culture implemented in Theory Z focuses on building intimate and dedicated relationships with colleagues and management to develop lasting commitments towards the company (Sullivan, 1983). .Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original EssayTheory Z also focuses on the concept and theory that the employee will “do the right thing.” This is achieved by ensuring there are detailed policies and work process flows. By having this type of environment, employees feel that they are not micromanaged and can complete their work with minimal supervision. This type of leadership style has been shown to provide a higher level of productivity than companies that have used other leadership styles (England, 1983). Many have wondered whether one form of leadership is better than another at ensuring the success of a company. Many forms of leadership have been tested over the years, but there are several styles that have been successful. Studies have shown that Theory Z has been the management style used in the founding of many large, highly successful companies that have large profit margins, but have also had the best employee retention rates and the highest loyalty from their employees. employees (D'Andrade, 1986). In America the Theory Z leadership concept is used successfully, yet it is not as widely accepted as it is in Japanese culture. There are several reasons for this, but the concept of “engaged workers” is key. This goes against what many American business leaders have been taught. Theory Z culture focuses on unskilled career paths, slow evaluations, and slow promotion strategies. This is not how American leadership executives have been taught and is an adjustment they must make to be successful in this type of management structure. American executives must consider this approach and begin to embrace it in their management style to be successful if their company is to fully utilize and reap the benefits of Theory Z (England, 1983). In America too often large companies tend to use bureaucratic hierarchy which many in recent years and with the introduction of Theory Z are becoming increasingly superfluous. (Ouchi, 1993). Executives are learning to take the success of companies in Japan that have used this leadership style for years and embrace the success it can provide. The final key point of the Theory Z leadership style is that it requires the company to move from a culture-driven technology approach to a people-centered culture (Ouchi, 1981). Without doing this, Theory Z will not be used to its full potential. Productivity gains are believed to be achieved by focusing on the people of a company, and not through rigorous leadership where decisions are based on the opinion of a top executive, and certainly not because technology pushed him to the top . Theory Z focuses on the fact that the employee, the people, are the heart of business success and, 1992).